Pay Board Members? Last week, with great fanfare and applause, NANOE honored their Board Members with financial compensation for their service to the charitable sector. NANOE’s president, Louis Fawcett, issued checks in the amount of $1,000 for their board meeting held during NANOE’s Convention & Expo in Charleston, SC. During his presentation Fawcett posed the question, “You may not pay your board members but if you did…WHICH ONES WOULD YOU KEEP?”
The crowd responded with both laughter and delight.
Jack Horak, of the TANGO Alliance was in attendance, and shared, “This is a sweeping reversal of sector orthodoxy — which presupposes that directors donate both their time and their money to the organizations they serve. Consequently, it’s no surprise that some of the more prominent sector voices were quick to dismiss NANOE’s message. NANOE’s paradigm turns conventional wisdom on its head so criticism in defense of the status quo is expected. However, after nearly 40 years as a legal and business advisor in the sector, I respectfully disagree with NANOE’s critics. I suggest that if they take their analysis to a deeper and broader level they will find considerable insight in NANOE’s suggestion, and perhaps conclude, as I have, that the paid professional board model may be the optimal choice for some, but not all, organizations.”
NANOE pays their board members $1,000 a day for in-person meetings, plus travel reimbursement, and $300 an hour for board meetings held by phone.
The Center for Association Leadership makes the point, “Although not the norm, compensating board members is legal in many circumstances and may be beneficial to the organization. If you’re considering this configuration check your by-laws and State requirements.”
Here’s 6 Reason Why Charities Should Pay Board Members:
If You Pay Board Members, Consider These Tips:
6 Reason Why Charities Should Pay Board Members was written by author, speaker and fundraiser James P. LaRose, CNE, CDE, CNC. He’s the author of RE-IMAGINING PHILANTHROPY: Charities Need Your Mind More Than Your Money™ written to philanthropists who give nonprofits what they really need…enterprise models that grow capacity and achieve financial sustainability.